Future of Recruiting 2023 Dach
Future of Recruiting 2023 Dach
Future of Recruiting 2023 Dach
of Recruiting
2023
Germany, Austria and Switzerland
Introduction
4. Skills-first hiring →
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Role of recruiting
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Prediction 1 | Role of recruiting
Recruiting professionals have never been able to make a bigger impact than
right now. You used to be able to say, ‘these hires helped our company’. Now
you can say, ‘I changed the make-up of our company, I changed where we
of recruiting professionals
86%
work, I changed what we look for, and I changed how we hire’.” in DACH say TA has
become a more strategic
Brett Baumoel, VP of Global TA, Engineering at Microsoft
function over the past year
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Prediction 2 | Role of recruiting
35%
can help their companies stay ahead of the curve by raising this conversation today.
say their companies
As the leader with the clearest view of candidate priorities, labour market dynamics, and real-time
recruiting performance at your company, you’re in the best position to lead the conversation about
increased salaries
pay and its business impact – from championing comp models that favour skills over pedigree, to enough to keep pace
retaining your top talent by pushing for pay increases that keep pace with inflation.
with inflation.
Jump to predictions about macroeconomic uncertainty →
Despite the current economic and geopolitical challenges, the goal in recruiting is still
to hire the best candidates on the best possible terms. Companies should consider that
salary is an important factor in attracting top talent and consider the risks they are taking
if they lose top talent due to unrealistic budget constraints. In addition, other aspects such
as corporate culture, development opportunities and creative freedom also play a decisive
role. For this reason, it is important to consider the various aspects and to clearly weigh up
and align the company and candidate goals.”
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Prediction 3 | Role of recruiting
70%
over the next five years.
That’s why refining and conveying a clear, compelling employer value proposition (EVP) is more
important than ever. With most recruiting budgets expected to shrink or stagnate, employer
branding stands alone as the only line item where a majority of TA professionals expect an of in-house recruiting professionals
increased investment this year. But investing in employer branding won’t get you far if you predict their employer branding
don’t work to understand talent’s top priorities and authentically walk the walk. investments will increase this year.
This is clearly a significant priority
Jump to predictions about employer branding → for DACH, as this figure is 10% higher
than the global average and is
An employer brand should not just be a buzzword during recruitment presentations, the highest of the EMEA countries
but should become a solid and essential part of the company’s business policy. To surveyed.
achieve this, the employer brand must receive the same importance and attention as
other important business strategies. We integrate it into our entire recruitment strategy
and beyond. Today, it plays a significant role for us in attracting and retaining top
talent that we need.”
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Prediction 4 | Role of recruiting Top soft skills DACH recruiters will need in
the future:
Recruiters will need a more strategic
set of soft skills. 1. Communication 76%
The skills companies need are changing fast. As LinkedIn’s CEO Ryan Rolansky likes to say,
“Even if you aren’t changing your job, your job is most likely changing on you.” Recruiting 2. Relationship Building 70%
teams themselves are no exception.
Adaptability, relationship building, and problem solving rank among the top 5 soft skills
recruiters will need in the future. As TA professionals become more strategic partners, they’ll 3. Empathy 68%
need to adjust on-the-fly and find solutions that ladder up to overarching business goals.
As companies align around skills-first hiring, recruiting teams will have to consider which skills
they value most – in the workforce at large, and within their own recruiting orgs. 4. Problem Solving 57%
73%
recruiting professionals
As recruiting leaders’ portfolios expand to include things like internal mobility, skills-first hiring, and
employee retention, they’ll need to cooperate more with L&D to prepare internal talent for new roles, say they need to work
identify skill gaps, and ensure your company is a place people can grow their careers. more closely with L&D
You’ll hear the same from DACH L&D professionals: 43% say they’re working more closely with TA in the future.
this year, according to LinkedIn’s DACH Workplace Learning Report for 2023. Those
respondents also say the #1 top focus area for L&D will be supporting employees through
organisational change – this is where recruiting can play a complementary role in understanding
what skills the company needs.
TA and Learning both report to me, to ensure we’re not operating in silos.
The heads of TA and L&D connect regularly to make sure we have continuity
between the skills we’re hiring for and the skills we’re training internally”.
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Prediction 6 | Role of recruiting
For the foreseeable future of recruiting, humans will still play an essential role.
Humanness still matters, especially for hard-to-fill jobs, and the core of that is
empathy. A good recruiter brings the opportunity and company to life, beyond
what a person can see on a website or job description.”
Glen Cathey, SVP, Workforce Advisory & Digital *Note: These results are from a smaller survey, distinct from the other
Strategy at Randstad survey results found in this report, comprising over 225 recruiting
professionals and hiring managers in the US; due to the smaller
sample size, these results should be understood on a more directional
9 basis.
Economic
uncertainty
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Prediction 6 | Economic uncertainty
67%
Though most recruiting professionals say hiring overall has been negatively impacted, two-out-of-
four say that diversity, equity, and inclusion (DEI) hiring is not being deprioritised – in fact, nearly
20% of DACH recruiting pros say it’s a higher priority now.
Work on DEI goes back decades, but it became a focal point for many in 2020, when a wave of Yet 67% of DACH recruiting professionals say the
companies pledged to make progress on diversity. Whether they deliver on that largely remains macroeconomic environment is not lowering the priority
to be seen, and you might look at these survey results with the same scepticism – is it aspirational of DEI hiring.
happy talk, or a real plan of action? Employees, candidates, and consumers alike will hold
businesses to their commitments.
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Prediction 7 | Economic uncertainty
If you’re a recruiting leader in 2023 and you don’t have a decent mix of contingent
talent, you’ll be more risk-exposed to whatever the future brings – good and bad.
You need some elasticity so you can flex up or down as needed”.
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Employer
branding
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Most important priorities for candidates
Prediction 9 | Employer branding in Germany overall:
The labour market remains tight, and talent is expected to retain the upper hand over the next five 3 Work life balance 52%
years. To stay competitive, employers will have to re-examine their employer branding and make
sure it aligns with what candidates are looking for today.
4 Impactful work 42%
Every month, LinkedIn surveys over 20,000 members globally about the most important factors they
weigh when considering a new job. Job security 38%
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The top priority for candidates today in Germany is compensation, followed by flexible working
arrangements, work-life balance, impactful work and job security. Not unsurprisingly compensation Survey data: Talent Drivers, as of Dec 2022.
and opportunities to learn new skills, are the two fastest growing priorities year-over-year.
There’s much more to your employer brand than good pay and flexibility and offering them may not
make you stand out – but be warned: if you don’t provide them, talent will take notice. Fastest growing priorities for candidates
YoY in Germany:
1 Compensation +15%
Good pay, balance, and flexibility – they’re essential and we absolutely provide that.
But honestly, that’s not what we call out in our employer branding, because that’s not 2 Opportunities to learn new skills +10%
what makes us unique. Nowadays, that’s the minimum companies need to provide to
attract candidates.” 3 Collaborative company culture +9%
Michaela Schütt, SVP, Head of Global Talent Acquisition 4 Flexible working arrangements +7%
Siemens
5 Clear goals/direction from sr. leadership +4%
Recruiting professionals tend to get tunnel vision on the most important priorities, to the detriment of TA estimates
other still-important factors. In reality, candidates’ preferences are more diffuse and less top-heavy
than a simple list might suggest.
So instead of fixating on the particulars of your flexible work policy, home in on the end result –
happy and inspired employees – and don’t neglect other aspects of your company culture that
foster that happiness. Rather than only focusing on how people can advance within your org, show
Undervalue:
candidates how they can develop new skills to elevate their career, whether or not they choose to
stay at your company. Employee happiness
Candidates
TA estimates
When the economy recovers, the competition for talent is going to spike back up very
quickly. So it’s really important for companies to make progress in how they position Opportunities to develop skills
their employer brand and, more importantly, how they bring it to life”. Candidates
TA estimates
Marc-Etienne Julien, Chief Talent Officer at Randstad Global
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Prediction 11 | Employer branding
What’s different about Gen Z’s priorities
Gen Z will reward employers who value in Germany?
development and diversity. Opportunities for career growth within the company
Gen Z – professionals born later than 1996 – are already a major part of the workforce. Many are +92% more likely to prioritise than Gen X
just getting their careers off the ground, and their priorities reflect that.
Gen Z’s priorities in Germany are significantly different from their parents’ generation, Gen X.
Career growth and inclusivity of diverse backgrounds to younger workers: they’re over 66% more
likely to value moving up the ranks, compared to Gen X.
The younger generation is also much more focused on learning new and highly desired skills. Inclusive workplace for people of diverse backgrounds
+41% more likely to prioritise than Gen X
Gen Z is almost 50% of our workforce, and we’ve learned to respect and adapt to their
ways of working. Gen Z doesn’t live to work, they think corporate jargon is silly, and
they expect to be paid fairly”.
Opportunities to learn new, highly desired skills
Ruben Santos, HR Strategy & Program Lead for HR Europe
& Indonesia at Ahold Delhaize +40% more likely to prioritise than Gen X
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Skills-first hiring
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Prediction 12 | Skills-first hiring
Globally, when looking for candidates on
Skills-first hiring will become the gold standard. LinkedIn, recruiters are...
Slowly but steadily, recruiting teams have begun to embrace skills-first hiring – the practice of valuing
a candidate’s skills over more superficial signals like an impressive alma mater or previous employer.
+25% more likely to search by skills than
Now, skills-first hiring is poised to be the way of the future. Three quarters of recruiting professionals they were 3 years ago, and
say it’ll be a priority at their company. But for some, their reach still exceeds their grasp: In DACH, only
54% feel they can accurately assess candidates’ skills today. Clearly, they’ll have some catching up
to do over the next few years. +50% more likely to search by skills than by
years of experience.
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Prediction 13 | Skills-first hiring
No degree? Increasingly, that’s no problem.
Skills-first hiring strategies will shine a light on
20% of U.S. job posts on
overlooked talent. LinkedIn don’t require a
25%
20%
If you’re not convinced yet that skills-first hiring is the future, consider this: by being more open to candidates four-year degree. 15%
who don’t have college degrees, you’ll be taking a big step forward in diversifying your workforce.
The share of these job 10%
There’s a growing consensus that removing four-year requirements is one of the most important things
posts has grown by +30% 5%
you can do to promote diversity. Members of underrepresented groups are far less likely to have
attended college – but that doesn’t mean they don’t have the skills and potential to succeed. Research over 6 months. 0
June December
shows that workers who didn’t go to college but have experience perform almost as well as college 2022 2022
grads on critical measures like productivity.
Today, one in five U.S. job posts on LinkedIn don’t require a four-year degree. That number is expected to grow Source: U.S. LinkedIn data, June 2022 vs. Dec 2022.
as more employers look to hire people from a multitude of backgrounds who can bring different perspectives
to their organisation.
Scrappy, self-taught types won’t have shiny brand names on their resume. Local
community colleges are a great source of nascent tech talent that big employers
never ever recruit from.”
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Prediction 14 | Skills-first hiring
Part of having a skills-first strategy is going beyond just hiring to ensure you’re looking
at the larger picture. First, you need to understand the skills that your business needs.
Then understand what skills your employees have, or that they can develop, and what
skills you need to hire for so that you build your talent strategies accordingly.”
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Internal mobility
& upskilling
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Prediction 15 | Internal mobility & upskilling
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Prediction 16 | Internal mobility & upskilling
There used to be a lot of emphasis on qualifications. Now, it’s much more about
skills and experience, the mindset is shifting. It’s really refreshing, and it’s the first
step to creating much more effective, diverse teams. Organisations need to have
diverse, inclusive environments that reflect their customer base – that’s what
people want. That’s what attracts talent and what retains people. Organisations
haven’t got a choice: they need to shift their mindset”.
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Prediction 17 | Internal mobility & upskilling
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Conclusion
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Conclusion
While every prediction in this report may not bear out precisely as described,
preparing today will leave you better equipped for whatever tomorrow holds.
Change is coming to the world of recruiting, but that doesn’t mean you’ll be a passive
observer. As a talent leader, you’re in a position to reshape the way the world works –
and ensure it works for everyone.
Ultimately, the future of recruiting belongs to those willing to build it. And as a change-
maker at your organisation, the future of recruiting belongs to you.
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Methodology
Survey data
LinkedIn Research surveyed 1,611 recruiting professionals in management seniority roles or higher
(1,216 corporate recruiting professionals, 395 search and staffing professionals), in addition to 403
hiring managers. Survey respondents are LinkedIn members who were selected to participate
based on information in their LinkedIn profile and qualified based on survey responses. This
survey was conducted in six languages across 20 countries between October and November 2022.
Candidate priorities and inclusion preferences are based on LinkedIn’s Talent Drivers monthly
survey of global members, including 20,396 members surveyed in December 2022. To measure
candidate priorities, respondents are asked to “select the most important factors when considering
a job opportunity”, and can select up to five of 15 employer value propositions. The fastest-growing
candidate priorities are those with the greatest percentage increase between December 2021 and
December 2022.
Insights data
Behavioural insights for this report were derived from the billions of data points generated by the
900 million members in over 200 countries on LinkedIn today. Unless otherwise noted, all data
reflects aggregated LinkedIn member activity as of 1 January, 2023. Demand for recruiters is
measured by the number of paid job posts for recruiter positions on LinkedIn globally.
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Acknowledgments
This report was informed by insightful interviews with several recruiting leaders around the world,
to whom we owe our sincere thanks, including: